The nearer a residential lease in Canford Cliffs gets to zero years unexpired, the the greater the reduction in the value of the property. Where the lease has, beyond 100 years remaining then this decrease may be fractional nevertheless there will become a point in time when a lease has fewer than 80 years left as part of the premium you will incur is what is known as a marriage value. This could increase markedly the cost. It is the main logic behind why you should consider extending sooner than later. Many flat owners in Canford Cliffs will qualify for this right; that being said a lawyer can advise if you qualify to extend your lease. In certain situations you may not qualify, the most frequent reason being that you have owned the property for less than two years.
It is generally considered that a property with in excess of one hundred years remaining is worth approximately the equivalent as a freehold. Where an further ninety years added to all but the shortest lease, the residence will be worth the same as a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Godiva Mortgages | A minimum of 70 years unexpired lease at completion for all scheme types apart from Lifetime Mortgages (Equity Release), which require a minimum unexpired term of 80 years at completion. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
The conveyancers that we work with undertake Canford Cliffs lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The conveyancing solicitor we work with provide it.
Half a year ago Jacob, came perilously close to the eighty-year threshold with the lease on his leasehold apartment in Canford Cliffs. In buying his home twenty years ago, the unexpired term was of little relevance. As luck would have it, he realised he needed to take steps soon on Extending the lease. Jacob extended the lease just under the wire last January. Jacob and the landlord in the end settled on the final figure of £5,500 . If he failed to meet the deadline, the sum would have become more exhorbitant by a minimum £925.
Last Spring we were approach by Dr Kian Cox , who took over the lease of a ground floor apartment in Canford Cliffs in March 2009. We are asked if we could estimate the compensation to the landlord would be to prolong the lease by a further 90 years. Identical residencies in Canford Cliffs with 100 year plus lease were in the region of £200,800. The mid-range amount of ground rent was £65 invoiced per annum. The lease expiry date was in 2085. Given that there were 60 years unexpired we calculated the premium to the freeholder to extend the lease to be within £20,900 and £24,200 not including professional charges.
Dr L Thompson took over the lease of a studio apartment in Canford Cliffs in February 2004. The dilemma was if we could estimate the compensation to the landlord would likely be for a 90 year extension to my lease. Similar premises in Canford Cliffs with 100 year plus lease were in the region of £255,000. The average amount of ground rent was £50 billed quarterly. The lease terminated in 2095. Having 70 years unexpired we estimated the premium to the freeholder to extend the lease to be within £9,500 and £11,000 exclusive of costs.